Document background
The Letter of Intent (Real Estate) is a crucial preliminary document in Swiss real estate transactions, typically used when parties have reached initial agreement on key terms but before committing to a binding purchase agreement. It serves multiple purposes: documenting the parties' intentions, establishing a framework for negotiations, and setting out the timeline and process for due diligence. While generally non-binding, certain provisions such as confidentiality and exclusivity can be made explicitly binding. The document must consider Swiss-specific legal requirements, including cantonal property laws, Lex Koller restrictions for foreign buyers, and local real estate practices. It's particularly valuable in complex transactions where detailed due diligence is required or where regulatory approvals may be needed. The LOI helps prevent misunderstandings and provides a clear roadmap for proceeding to a final purchase agreement.
